This paper presents a two-dimensional finite element model for simulating dynamic propagation of weakly dispersive waves. Shallow water equations including extra non-hydrostatic pressure terms and a depth-integrated vertical momentum equation are solved with linear distributions assumed in the vertical direction for the non-hydrostatic pressure and the vertical velocity. The model is developed based on the platform of a finite element model, CCHE2D. A physically bounded upwind scheme for the advection term discretization is developed, and the quasi second-order differential operators of this scheme result in no oscillation and little numerical diffusion. The depth-integrated non-hydrostatic wave model is solved semi-implicitly: the provisional flow velocity is first implicitly solved using the shallow water equations; the non-hydrostatic pressure, which is implicitly obtained by ensuring a divergence-free velocity field, is used to correct the provisional velocity, and finally the depth-integrated continuity equation is explicitly solved to satisfy global mass conservation. The developed wave model is verified by an analytical solution and validated by laboratory experiments, and the computed results show that the wave model can properly handle linear and nonlinear dispersive waves, wave shoaling, diffraction, refraction and focusing. Copyright (c) 2013 John Wiley & Sons, Ltd.